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Emergency Economic Response and Evaluation in the COVID-19 Crisis

Author

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  • Daigo Nakata

    (Senior Fellow, Research Institute of Economy, Trade and Industry)

Abstract

This paper organises the variations of countermeasures put in place by countries around the world as their emergency financial measures to cope with the COVID-19 crisis that hit the world at the beginning of 2020. At the same time, it surveys policy evaluation analyses in countries that implemented similar policies as Japan’s emergency financial measures. In particular, it surveys reports published over the past few years on analyses in the United States, South Korea, and Israel that implemented direct transfer policies on household budgets, similar to Japan’s special cash payments, analyses in the United States and Australia that implemented employment retention policies similar to Japan’s employment adjustment subsidy, and analyses in Germany that reduced value-added tax (consumption tax) rates, which was not implemented but much debated in Japan. By summarising the experiences and analysis results in these countries, this paper organises the suggestions and implications related to future policy formation in Japan.

Suggested Citation

  • Daigo Nakata, 2023. "Emergency Economic Response and Evaluation in the COVID-19 Crisis," Public Policy Review, Policy Research Institute, Ministry of Finance Japan, vol. 19(4), pages 1-25, November.
    • Handle: RePEc:mof:journl:ppr19_04_07
    DOI: 10.57520/prippr.19-4-7
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    References listed on IDEAS

    as
    1. Steven Hamilton, 2020. "A Tale of Two Wage Subsidies: The American and Australian Fiscal Responses to COVID-19," National Tax Journal, National Tax Association;National Tax Journal, vol. 73(3), pages 829-846, September.
    2. James Bishop & Iris Day, 2020. "How Many Jobs Did JobKeeper Keep?," RBA Research Discussion Papers rdp2020-07, Reserve Bank of Australia.
    3. Scott R. Baker & Robert A Farrokhnia & Steffen Meyer & Michaela Pagel & Constantine Yannelis, 2023. "Income, Liquidity, and the Consumption Response to the 2020 Economic Stimulus Payments," Review of Finance, European Finance Association, vol. 27(6), pages 2271-2304.
    4. Michiru Kaneda & So Kubota & Satoshi Tanaka, 2021. "Who spent their COVID-19 stimulus payment? Evidence from personal finance software in Japan," The Japanese Economic Review, Springer, vol. 72(3), pages 409-437, July.
    5. Funke, Michael & Terasa, Raphael, 2022. "Has Germany’s temporary VAT rates cut as part of the COVID-19 fiscal stimulus boosted growth?," Journal of Policy Modeling, Elsevier, vol. 44(2), pages 450-473.
    6. Olivier Coibion & Yuriy Gorodnichenko & Michael Weber, 2020. "How Did U.S. Consumers Use Their Stimulus Payments?," Working Papers 2020-109, Becker Friedman Institute for Research In Economics.
    7. Michihito Ando & Chishio Furukawa & Daigo Nakata & Kazuhiko Sumiya, 2020. "Corrigendum: Fiscal Responses to the COVID-19 Crisis in Japan: The First Six Months," National Tax Journal, National Tax Association;National Tax Journal, vol. 73(4), pages 1267-1268, December.
    8. Moon Jung Kim & Soohyung Lee, 2021. "Can Stimulus Checks Boost an Economy Under Covid-19? Evidence from South Korea," International Economic Journal, Taylor & Francis Journals, vol. 35(1), pages 1-12, January.
    9. Marius Clemens & Werner Röger, 2021. "Temporary VAT Reduction during the Lockdown," Discussion Papers of DIW Berlin 1944, DIW Berlin, German Institute for Economic Research.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    COVID-19; emergency economic measures; direct transfer; employment retention policies; value-added tax;
    All these keywords.

    JEL classification:

    • H12 - Public Economics - - Structure and Scope of Government - - - Crisis Management
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies

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